Italy Signals Desire to Strengthen Trade with Iran

Fueled by the Republic of Iran's improving standing in the international
business community, Italy has expressed its hopes for expanding trade with
Iran.

Fueled by the Republic of Iran's improving standing in the international

business community, Italy has expressed its hopes for expanding trade with

Iran.

"We have considerable demand for Iran, particularly for industrial projects," a spokesman for Italy's SACE credit agency recently conveyed, adding that transactions should be balanced with the level of exposure.

In August 1999, Medicredito Centrale and Banca Commerciale Italiana extended

a $1 billion credit line to Iran's five main commercial banks, MEED reported. MEED said that although the line has still to be activated, three to four large projects are pending.

Last year, Italian exports to Iran slumped by 17 percent. Sales by the

European nation in the first three months of 2000 dipped a further 26 percent to $151 million, as imports from Iran expanded by 97 per cent to over $500 million, according to Eurostat statistics.

Italy's oil companies, including ENI which already boasts a share in the

development of Iran's Doroud Oil Field, are aiming to further build relations with Iran.

Italy, is and has been a major buyer of Iranian oil. Italy is interested in

Iran's huge oil and gas resources, and wants to sell the nation more food,